A price war between two of China's biggest consumer retailers is intensifying after Suning Appliance and e-commerce website 360buy.com began offering massive discounts online.

Meanwhile, other competitors like Gome Electrical Appliance and Dangdang.com have also entered the ring.

It all started with a micro blog note. The blog posted on Tuesday by Liu Qiangdong, the CEO of online retailer 360buy.com, said that his company will get a zero percent gross margin from large home appliance sales in the next three years. He also promised to sell large home appliances at a price about 10 percent lower than its major rivals Gome or Suning.

Liu Qiangdong's Micro Blog wrote, "360buy.com will get a zero percent gross margin from large home appliance sales in the following 3 years.

I assure you that the prices of large home appliances sold on 360buy.com will be at least 10% lower than those in the Gome and Suning stores."